"Senate bill change good news for Nebraska airport"

Friday, June 13, 2003

Senate bill change good news for airport
Amendment drops requirement that small facilities match portion of EAS
funding
By Harold Reutter
The Grand Island (NE) Independent


The Senate passed an amendment Thursday to remove a provision in the Federal
Aviation Administration (FAA) Reauthorization bill that would have required
Grand Island to pay for a portion of its Essential Air Service.

Bill Stovall, manager of the Central Nebraska Regional Airport, said the
amendment will potentially save Grand Island "a couple of hundred thousand
dollars."

Essential Air Service (EAS) helps maintain passenger service in small and
rural communities by providing the federal subsidies needed to cover
operating costs.

Stovall said he does not know exactly how much Grand Island's share of EAS
would have been.

He said the Department of Transportation and air carriers are in the process
of negotiating those subsidies now. Grand Island's share could have ranged
anywhere from 10 percent to 25 percent of the eventual subsidy. Stovall said
the combination of both factors makes it very difficult to estimate the cost
to the Grand Island airport.

Consequently, he gave a wide range of the potential impact, ranging from as
little as $10,000 to $20,000 all the way up to around $200,000.

The amendment, cosponsored by U.S. Sen. Chuck Hagel, R-Neb., will help
Senate negotiators when the FAA Reauthorization bill goes to conference with
the House of Representatives.

Currently, the House bill would require airports that are within a 170-mile
radius of a hub airport to pay a portion of the service costs.

The House version would affect airports in Grand Island and Norfolk, which
are within 170 miles of Omaha.

Stovall said other airports such as North Platte, McCook and Kearney would
not be affected by the House version of the bill. He said the Senate
amendment would keep it even financially for airports in Nebraska that
expect to receive EAS service under the reauthorization bill.

"We certainly appreciate Sen. Hagel for working on this amendment," Stovall
said. "We're thankful that the senator -- as always -- went to bat for us
and helped us out."

"Adequate air service to rural communities is vital to their survival, and
to the economic well-being of the entire state," Hagel said in a printed
statement provided to The Independent. "This provision could have ultimately
placed a new burden on the communities of Grand Island and Norfolk. The
Senate's action today provides critical leverage as this bill moves into a
conference with the House."

Stovall said he is very hopeful House members will agree with the Senate
version that will not require Grand Island to pay a portion of its EAS
service.

Beth Lee, press secretary for Sen. Hagel's office, also expressed hope that
the final bill will be in line with the Senate version of the
reauthorization bill.

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